new florist business how to treat bulbs & seeds perennials

[nwtaxlady]

Client started a home florist business. She is selling flower bouquets. She says 80+% are imported so she is growing all her own flowers. She didn't have much income in 2021 but has lots of expenses.
What should be done with the bulbs and seeds (thousands of dollars worth) that she planted and will get multiple cuttings off of? Could this be amortized straight line for 3 or 5 yrs? Since she will be getting multiple cuttings off of them? IF she takes it all as an expense then she will end up with a HUGE loss with not much income. She would rather have the expense in future years.

[ATSMAN]

If she is growing flowers from seeds, she should file Sch F for that part of the business. Sch F has line items for seeds, fertilizers etc.

[EvenKeelTax]

Interesting whether this should be a sch F or sch C. I would have thought sch. C. Depreciate over 7 years Asset class 01.1 from TTB page 9-19? I put a question mark there because I am not confident I am right on that.

[Dude]

Selling bouquets: Looks like it would be easy to defend using schedule C right now. If she developed an area and built a greenhouse dedicated to perennials on par with an orchard then probably schedule F. https://www.irs.gov/forms-pubs/about...and%20orchards.

[ATSMAN]

Most small Florists sell flowers that are either directly imported or purchased wholesale. However in the last 2 years a bunch of them have started growing their own flowers because supply chains were strained. It would be advantageous to file Sch F for the growing operation and Sch C for the retail side.